How can it be so affordable?

jhogan2424

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The price increase on the Model Y this week got me to thinking…. How can the CT pricing that we all reserved not increase? The CT has many more options and is supposed to be priced nearly the same or even less in single or dual trims than the model Y costs today. If you were to take the current cost of a model 3 or Y and then add for the options of more battery, 4 wheel steering, shatter resistant windshield, pricier tires, air suspension, air compressor, AC power access, motorized bed cover, towing amenities, etc. how could the price possibly stay near what it is advertised? One example I can speak to is the motorized aluminum slat type bed cover. I have one on my F350 from a 3rd party of course, not Ford, and it costs me $3,700. I know the manufacturing process of both the truck and the battery will be more streamlined but can it save that much money? How can a dual motor CT have a window sticker thousands less than the cheapest model Y?
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Crissa

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The price increases for the Y are probably based upon taking profit from an overheated market. If you don't have more of a product to sell, you can always try raising the price to increase your profits.

There is no particular reason why these prices would reflect costs rising in the background - and certainly not long term.

The Cybertruck is designed to cut costs in several ways. It doesn't use paint. It uses fewer metals. It uses folding instead of stamping. It has fewer panels.

And Tesla uses fewer parts to do the same thing others do. Fewer chips, shorter cabling, shorter tubing, fewer controls, etc. So they're affected by these shortages less than other manufacturers.

-Crissa
 

GnarlyDudeLive

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I would believe also they can remain lower cost because Tesla is more vertically integrated where as they don't get gouged by as many middle man manufactures of sub parts due to supply chain woes.
 

John K

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We can reverse engineer the price with known upgrade prices.

1. We can ignore FSD
2. Extra motor $10,000
3. Extra battery $10,000

we can assume each of these upgrades are profitable and subtract from the base cost. (These are very loose estimates)

Removing motor and battery from cost, we have 20,000 remaining retail cost.

1. CT removed paint
2. Less casting-stamped parts requiring assembly and sealing.
3. Total metal cost per unit is a low percentage to the price.
4. Interior
5. Monitor
6. Half a steering wheel
7. cameras
8. Computer
9. should be savings on wire harness compared to ICE
10. Tonneau cover adds cost (this is awesome if remains standard)
11. Less gauges
12. Touch screen monitor
13. Base rims and tires, 32” most Likely an upgrade cost
14. Glass
15. Misc parts on all vehicles

compared to an ice, much more streamlined on parts and assembly. Compared to another Tesla model, paint and sealing Assembly of more panels.

yes, they can remain profitable at the originally stated price. (SWAG) Actuary computations are normal if a price increase is required. The company will not lose money building these and keeping the originally stated price for a couple years is a huge in marketing potential.

I am predicting the base prices will remain for those who were quick to reserve. Upgrades will yield higher profits.

I cannot post specific details since I am not in the know and am guessing heavily.

plus, the real profit will be in dual and tri orders. Those trim packages are overwhelming compared to single motor trim package.
 
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jhogan2424

jhogan2424

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I can see all of these points and they are definitely all valid and make plenty of sense.. I just think it will be odd to be at a Tesla dealership and see a basic model Y dual motor priced at the current $54,000, and sitting next to it a dual motor CT with all the above mentioned upgrades for $49,000. Seems like that could make the Y a hard sell to a lot of buyers when they see this CT with so many more cool features and it costs 10% less. They may not be in the market for a truck but it will make them wonder why the more expensive Model Y they are considering purchasing doesn’t have any comparable features but still costs more.
 

DarinCT

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Paint, press, PR is billions of dollars of saving. The question about how its price is cheaper than a Y. My guess is that it isn't cheaper to make and that the price will go like it did for the 3 and the Y. There aren't currently economies of scale, known costs, and/or what the market will support especially with our without credits.

In a year or two, we may just find that the CT price has gone up. In the meantime, a slight loss leader will bring all the boys to the yard.
 
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jhogan2424

jhogan2424

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Paint, press, PR is billions of dollars of saving. The question about how its price is cheaper than a Y. My guess is that it isn't cheaper to make and that the price will go like it did for the 3 and the Y. There aren't currently economies of scale, known costs, and/or what the market will support especially with our without credits.

In a year or two, we may just find that the CT price has gone up. In the meantime, a slight loss leader will bring all the boys to the yard.
Gotcha👍 I can understand that.
 

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4680 cells will lower the cost of the battery. We all know the battery is the most expensive part of the vehicle.

A lot of the cost savings will come from the verticle integration and the next-generation manufacturing (once it gets to scale). I mean look at the Giga-Presses of both the front and rear sections as well as the structural pack.

I think Tesla has priced in all of these cost savings into the CT. I don't think they will be as profitable as SEXY until they can reach scale, but I believe that Tesla will not raise the prices of CTs for the reservation holders. I do anticipate price increases once the CT launches, especially if there are still part/chip shortages
 
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jhogan2424

jhogan2424

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I really hope Tesla honors the published price at least long enough for every single reservation holder from the first one to the last one has their chance to purchase. Now, if they changed the online price today of course it would only be fair for any new reservations made after the online price change to pay the new price but for everyone that swiped their card and reserved at the current price I feel should be honored. However, accessories and upgrades that did not specify a cost like solar panels and the cyber quad is fair game for Tesla to charge whatever they want because those items are not what we reserved. The trucks were though.
 
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jhogan2424

jhogan2424

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Does anyone think the price of the model Y will decrease when they start using the 4680 cells? I kind of want a model Y too. 😁
 

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Does anyone think the price of the model Y will decrease when they start using the 4680 cells? I kind of want a model Y too. 😁
Yes! lol.

Tesla's mission is to accelerate the world's transition to sustainable energy. In order to do this Tesla will always drive down the cost of their vehicles. Lower price points make for a larger target audience. As Crissa just mentioned in another post, 2021 has so far been a year that can not compare to any other. Higher demand, peak production go with part shortages. The recent price increases are temporary and prices will lower again.

We also may get lucky with the new infrastructure bill if it passes, which could give Tesla buyers $10k off...... 2022 is the year I'm looking forward towards.
 
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jhogan2424

jhogan2424

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I am seriously thinking of purchasing a model Y long range now just to tide me over until CT arrives. I use my current truck for both work and as a daily driver but it’s showing it’s age and a few problems popping up. I’m thinking of getting the Y to use as my daily driver and only using the truck when towing excavators, skid steers, etc. As I was checking the Tesla site for a model y this evening, of course it now has no estimated ship date so I dunno. 🤦‍♂️
 
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